Decision-making through multi attribute utility methodology (domestic coal and energy security)

Abstract

The evolution of the coal mining industry in Spain until today

has resulted in a totally restructured sector. At the same time,

Spain is highly dependent on imported oil and natural gas

makes coal resources a key aspect to ensure secure energy

supplies to Spanish citizens.

This article investigates into the feasibility of long term

alternatives of Spanish coal through a MCDM (Multi-Criteria

Decision Making) process. The main contribution of this

research is twofold. Firstly, to evaluate long term performance

of existing coal deposits in Spain using MAUT methodology

within three distinctive areas of competence: geographical

location, coal mining technology and coal type. Secondly, to

assess opportunities for coal resources that can be considered a

means of ensuring energy supply security in the future.

Our investigation shows that in spite of the reasonable

availability of coal resources in the North of Spain, the only

alternative that can be regarded commercially viable on

an ongoing basis, seems to be coal production in Teruel.

Production costs of anthracite and bituminous coal in Castilla

y León and Asturias, both in the area of 90 Eur/tce, seem to be

far from being in a position to compete against imported coal

in the future. In our view, the future design of an Emergency

Plan for security of supply reasons using coal as back-up fuel

should take into account that the referred production costs

could be not achievable if those mines were not functioning on

an ongoing basis.